DBCB RMD calculation APR assumptions

[Audrey]

for example: calculating a 2024 RMD using the accrued benefit on EOY 2023 valuation (small plan)

NRA in plan document is 62

the owner is 74 in 2024 and is active in the plan (still working at the company)

when calculating the APR, 

1. use 2023 mortality table, and

2. post retirement actuarial equivalent interest rate

 

I'd like to confirm if the 1 and 2 assumptions above are correct, and see if there are any regs about these assumption determinations. another question is if the plan actuarial equivalence mortality table is 94 GAR, do we need to use 94 GAR for all RMD cals or we should use the 2023 mortality table when using the accrued benefit on 2023 valuation? Thanks in advance.

[Lou S.]

My understanding is he would elect a form of payment that meets the RMD rules (does not extend beyond his life expectancy) and is allowed by the plan (is one of the optional forms with spousal consent or is the normal form if you don't get spousal consent) and you convert the account balance to an annuity in that form of payment using the Plan's actuarial equivalence factors.

[Audrey]

On 10/15/2024 at 3:15 PM, Lou S. said:

My understanding is he would elect a form of payment that meets the RMD rules (does not extend beyond his life expectancy) and is allowed by the plan (is one of the optional forms with spousal consent or is the normal form if you don't get spousal consent) and you convert the account balance to an annuity in that form of payment using the Plan's actuarial equivalence factors.

Thanks Lou, when calculating the APR, do you also use 2023 mortality table and post retirement interest rate in this case? or you use 2024 mortality table and pre retirement rate?